Slide 1: Investor Presentation
Investor Presentation May 2015 LendingTree, Inc. (Nasdaq: TREE)
Slide 2: Forward-Looking Statements
Forward-Looking Statements Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 The matters contained in this presentation may be considered to be "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as ame
Slide 3: A True Online Marketplace
A True Online Marketplace Enabling consumers and lenders to shop for… each other Free Credit Scores Tools & Resources Retail Banks Ratings & Reviews Mortgage Access to Cost-Efficient Cos. Multiple Customer Online Offers Acquisition Platforms/ P2P Performance Marketing Specialty Machine Finance Excha
Slide 4: Where Consumers Shop for Money
Where Consumers Shop for Money THE Online Marketplace for Analogous to other marketplaces Consumer Loan Shopping in Travel, Retail, etc. 2
Slide 5: Working With Top-Tier Lenders
Working With Top-Tier Lenders… …of all models… …across loan categories Banks $17B+ Annual Loan Originations(1) Facilitated by LendingTree Other Personal Mortgage Auto Loans Loans Lenders/ Home Brokers Equity Mortgage P2P & Specialty Finance $17B+ Student Loan Refi Small Business 1) Annual run-rate b
Slide 6: Providing Value to Both Borrowers and Lenders
Providing Value to Both Borrowers and Lenders Borrowers can save by comparison-shopping Lenders receive predictable, targeted, cost-efficient volume Highly-Targeted “Filters” (1) Multiple Delivery Methods Reporting & Analytics 1) Source: LT press release (10/15/14) – “In the third quarter, borrowers
Slide 7: Consumer Finance: Mortgage Leadership & New Category Growth
Consumer Finance: Mortgage Leadership & New Category Growth Well-positioned to grow share $12 Tril. Consumer(1) + Small Business(2) across all lending categories Debt Outstanding (US) ($ Trillions) $10 Lenders tell us: $9 $8.2 Borrower acquisition is their key constraint to growth $8 +7x vs. #2 $7 C
Slide 8: Market Share / Revenue Opportunity
Market Share / Revenue Opportunity 10% share $2.0B+ revenue $1.0B revenue 4.4% share $500M revenue 2.2% share 2014: $167M Revenue Facilitating Est. 0.8% share of originations across all loan categories Source: Third-party and internal estimates. Assumes $1.9T annual industry loan origination
Slide 9: Continuous Product Innovation
Continuous Product Innovation Reverse Mortgage – Q1 ‘13 Credit Cards – Q2 ‘13 Mobile Experience – Q2 ‘13 Personal Loans – Q3 ‘13 Loan Officer Directory – Q1 ‘14 Local Introductions – Q1 ‘14 Small Biz Loans – Q3 ‘14 Student Loan Refi – Q4 ‘14 7
Slide 10: All-New My LendingTree
All-New My LendingTree 100% free credit score…“with a brain” $569 John Doe $ $ Free credit score for consumers enables: • Proactive, market-based savings alerts to consumers • Exposure to broader set of LT offerings Reduces dependence on paid marketing • Repeat user engagement – lifetime value 1+ mi
Slide 11: My LendingTree: 1+ Million Users Enrolled
My LendingTree: 1+ Million Users Enrolled Daily New Users Cumulative New Users 8,000 1.0M+ 1,000,000 3rd 300k 7,000 in 57 days Scaling paid marketing 6,000 800,000 2nd 300k 5,000 in 80 days 600,000 4,000 3,000 Mobile 400,000 1st 300k enabled in 160 days 2,000 200,000 1,000 0 0 Mar-15 Sep-14 Feb-15 N
Slide 12: The Iconic Brand
The Iconic Brand 68% brand awareness $1+ billion lifetime investment Aided Brand Awareness(1) 100% 79% 80% 68% 64% 60% 40% 22% 20% 13% 8% 2% 0% Wells Fargo Quicken Loans Zillow Bankrate Lower-My-Bills Google Advisor Source: LendingTree Consumer Research Study conducted by S. Radoff Associates, LLC,
Slide 13: Financial Profile
Financial Profile
Slide 14: How We Make Money
How We Make Money Lender Economics of Customer Acquisition Example: Mortgage Price # of Leads Total Funded Loan Cost per per Lead X Purchased = Lender ÷ Volume = Funded Loan Spend (Lender • $1–$100+ Conversion) • 50–150 bps Other loan categories follow similar paradigms • CPFL ranges vary across loa
Slide 15: Operating Model
Operating Model % of Revenue(1) • Match Fees Revenue 100% • Closed Loan Fees • Hybrid • TV • Paid Search • Social Media - Working Media Expense 56% • Radio • Organic Search • Partnerships • Print • Display • Email • Agency Fees • Ad Serving - Non-Media Expense 2% • Creative Production • Free Credit
Slide 16: Quarterly Financial Performance
Quarterly Financial Performance Revenue & VMM ($ Mil) Adjusted EBITDA(1) ($ Mil) Launched 100% $10 40% National $50.9 $51- Add’l Brand Brand $53 , $8.9 Investment $50 90% $9 Campaign 35% $43.9 $42.1 80% $8 $41.3 $40.0 30% $40 $37.4 $37.3 $7.0- $36.4 70% $7 $7.5 $5.9 $6.0 $5.8 25% 60% $6 $5.5 $5.4 $3
Slide 17: Unpacking Revenue Growth: Mortgage vs. Non-Mortgage
Unpacking Revenue Growth: Mortgage vs. Non-Mortgage Revenue ($ Mil) $55 Q1 ‘15 total revenue +27% Y/Y 2013 = 2014 = • Mortgage Products +8% $139.2M $167.4M $50 $13.9 • Non-Mortgage Products +140% $45 Product innovation and diversification $10.7 • New and re-launched loan & credit $7.5 categories $40
Slide 18: Non-Mortgage: Innovation & Diversification
Non-Mortgage: Innovation & Diversification Non-Mortgage Revenue ($ Mil) Personal Personal Loans Loans >$2M >$3M revenue revenue Personal Student (Jan.) (Mar.) $16 Loan 35% Loans >$1M Small Refi $13.9 $14 revenue Biz 30% Student (July) Loans $12 Loans $10.7 27% 25% $10 Personal $9.3 Credit Loans 24%
Slide 19: Mortgage: Significant Share Gains Over Last Years
Mortgage: Significant Share Gains Over Last 2 Years Mtge Products Revenue vs. Industry Originations $38 Loan Lapped Lead $600 Local Officer Brand Originations (Bil) Quality Revenue (Mil) $37.0 Mobile Intros Directory Campaign Initiative $36 $568 Forms $550 $34.7 $34.2 Pre-Qual $516 $500 $34 $33.1 $3
Slide 20: Selected Balance Sheet Items
Selected Balance Sheet Items ($ Mil) 3/31/15 Cash & Equivalents $88.5 (1) Restricted Cash & Equivalents 18.7 Accounts Receivable 19.6 Total Current Assets 128.0 Working capital of $86.4M(2) PP&E 5.7 Goodwill 3.6 Significant NOLs(3) Intangible Assets 11.1 • $36M Federal Total Assets $148.6 • $316M St
Slide 21: Guidance Summary
Guidance Summary Q2 2015 FY 2015 Revenue $51.0 - $53.0 Revenue $202.0 - $208.0 Y/Y Growth 21% - 26% Y/Y Growth 21% - 24% VMM $ $19.0 - $20.0 VMM $ $78.0 - $82.0 Y/Y Growth 20% - 27% Y/Y Growth 20% - 26% Adj. EBITDA $7.0 - $7.5 Adj. EBITDA $30.0 - $31.0 Y/Y Growth 27% - 36% Y/Y Growth 37% - 42% 18
Slide 22: Investment Highlights
Investment Highlights THE marketplace for consumer loans Providing value to consumers & lenders Leader in largest loan category – Mortgage At forefront of high-growth lending categories Iconic LendingTreebrand Cutting-edge marketing & analytics Continuous product innovation New My LendingTree – pers
Slide 23: For more information please contact:
For more information please contact: Trent Ziegler VP – Finance & Investor Relations trent.ziegler@lendingtree.com 704-943-8294 Alex Mandel Chief Financial Officer alex.mandel@lendingtree.com Doug Lebda CEO and Chairman doug.lebda@lendingtree.com 20
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